These four Bihar-based firms likely to gain as Nitish Kumar becomes pivotal for BJP-led NDA

  • The Lok Sabha election results in Bihar highlight Nitish Kumar's importance in state politics. Some companies in Bihar may benefit from Nitish Kumar's alliance with the government, potentially leading to industrial growth and employment opportunities.

Dhanya Nagasundaram
First Published8 Jun 2024, 12:49 PM IST
Caretaker Prime Minister Narendra Modi shows a victory sign while posing for a group picture with Bihar Chief Minister Nitish Kumar, Telugu Desam Party (TDP) Chief N Chandrababu Naidu, and other NDA leaders during a meeting, at his residence, 7, LKM, in New Delhi on Wednesday. (ANI Photo)
Caretaker Prime Minister Narendra Modi shows a victory sign while posing for a group picture with Bihar Chief Minister Nitish Kumar, Telugu Desam Party (TDP) Chief N Chandrababu Naidu, and other NDA leaders during a meeting, at his residence, 7, LKM, in New Delhi on Wednesday. (ANI Photo)

The Lok Sabha election results in Bihar have yet again proven the significance of chief minister Nitish Kumar in the state's predominantly triangular politics, as well as his remarkable ability to come back exactly when many others have written him off. In the recent Lok Sabha elections, Nitish Kumar's Janata Dal (United) [JD(U)] contested 16 seats and won 12.

The BJP won 240 Lok Sabha seats, falling 32 seats short of a majority. The BJP needed four allies to obtain a majority: N Chandrababu Naidu's TDP, which has 16 seats, Nitish Kumar's JDU (12), Eknath Shinde's Shiv Sena (7), and Chirag Paswan's Lok Janshakti Party-Ram Vilas (5).

Also Read: Narendra Modi to take oath as PM: From guest list to security arrangements, here’s all you need to know

TDP chairman Chandrababu Naidu and JDU's Nitish Kumar have emerged as kingmakers of National Democratic Alliance (NDA at this critical time, shares of companies based in Bihar and Andhra Pradesh have been soaring. 

Some companies based in Bihar or with facilities there may gain even more from the political climate. According to Arun Kejriwal, founder of Kejriwal Research and Investment Services, there has not been industrialisation in the state of Bihar for various reasons, and the fact that Nitish Kumar is now an important ally of the government, which is not in majority. Some concessions to the state might result in incentives for industrialisation, thereby providing for employment and state growth. While not much industrialisation has occurred at this time, those who are looking to invest in this state beyond natural resources are doing so.

“Capex and Consumption are two sides of a coin. Bihar like every other state in the country is expected be a bigger beneficiary of India growth story. We see extremely positive 10 years in the country,” said Deven Choksey, MD, DRChoksey FinServ Pvt Ltd.

Also Read: CCP meeting today: Clamour grows for Rahul Gandhi to take over as Leader of Opposition in Lok Sabha

 Let's look at the following firms operating in Bihar. 

Aditya Vision Ltd

Aditya Vision is an advanced multi-brand consumer electronics retailer headquartered in Patna, Bihar. The journey began with a single retail store in Patna in 1999, and now, in its third decade, the business has grown from strength to strength to become a chain of the most trusted consumer electronics retail stores in Bihar, as well as in all major cities in Jharkhand and Uttar Pradesh.

Globus Spirits Ltd 

Globus Spirits manufactures and distributes Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL), bulk alcohol, hand sanitizer, and franchise bottling. Globus Spirits Limited, originally Globus Agronics Limited, was established in 1993. Globus Spirits operates distilleries in Rajasthan, Haryana, West Bengal, and Bihar. Their completely integrated facilities manufacture Rectified Spirits, Grain Neutral Alcohol (ENA), Value-priced Spirits, and Premium Spirits.

SIS Group Enterprises Ltd

The company was established in 1985 in Patna, Bihar, and specialises in providing security and associated services such as manned guards and training. SIS is directly and indirectly engaged in delivering security and associated services consisting of manned guarding, training, and indirectly involved in paramedic and emergency response services; loss prevention, asset protection, and mobile patrols.

V2 Retail Ltd 

V2 Retail, India's premier fashion and lifestyle retail network, has been meeting the requirements and preferences of fashion-forward consumers for more than a decade. The brand has quickly adapted to the shifting fashion environment in the country, playing an important role in delivering the latest trends to the public.

The firm operates ‘V2 Retail’ outlets that sell clothes and miscellaneous items. According to news reports, the company has cutting-edge production facilities in Noida and Bihar, as well as 27 outlets in the latter.

“The demand for special category status shall focus on the companies headquartered in the state of Bihar. Due to reforms and leadership of JDU Govt, we expect the body corporate may enjoy the pie of benefits from Central Govt and States Govt policy. Companies such as Aditya Vision(service-oriented electronic retail chain in Bihar), Globus spirits(operates a manufacturing facility in Bihar with a capacity of 28.9 million liters), SIS (primarily involved in providing security and related services) , Ahluwalia Contracts (company has an order book from Bihar worth 10,510 million.) shall remain in the spotlight,” said Mahesh M Ojha, Hensex Securities Pvt Ltd's AVP of Research and Business Development.

Also Read: Nitish Kumar eyes key ministries, TDP's Rammohan Naidu poised for cabinet inclusion: What we know so far

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.

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First Published:8 Jun 2024, 12:49 PM IST
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